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Leadership At WildChina A Case Solution

Solution Id Length Case Author Case Publisher
1516 629 Words (4 Pages) Daniel J. Isenberg, Shirley M. Spence Harvard Business School : 807046
This solution includes: A Word File A Word File

Mei Zhang, the founder of WildChina (A), is concerned about the future of the company. Since Zhang handed over the firm to Jim Stent in 2004, the company’s performance declined tremendously. Jim Stent’s Management style was considerably different from that of Zhang. Hence, in 2005, WildChina (A) was facing financial pressures and sales and operational problems.

Following questions are answered in this case study solution

  1. Problem Statement

  2. Analysis

  3. Strategic Alternatives

  4. Recommended Action Plan

Case Analysis for Leadership At WildChina A

2. Analysis

The change in management and leadership styles was one of the reasons for the decline in WildChina’s profitability. Mei Zhang Management style was directive with an authoritarian leadership style. Zhang was more proactive then Stent and continuously worked to increase sales. However, Stent laissez-faire leadership style. He delegated all the responsibilities of each department and focused on streamlining the operations. Unlike Zhang, who motivated her staff to work 14 hours a day to maintain the quality of service, Stent reduced the pressure on staff to work long hours. 

The motivation level of Zhang was significantly more than that of Zhang. Zhang was the founder of WildChina, but Stent joined WildChina with only a three-year contract. Zhang was more invested in the business. Hence, she was hands on and was involved in all the major project within WildChina. Stent worked at a slower pace and was not involved in these projects. While Zhang was easily approachable by her staff, Stent was unavailable. Stent was also less involved in attracting client and maintaining the relationship with current clients.

Furthermore, Zhang had more knowledge and expertise in managing WildChina. Zhang emphasized on expansion by increasing sales especially for CEM segment and minimized costs. However, Stent focused on maintaining WildChina’s performance by streamlining operations that increased costs. 

3. Strategic Alternatives

As Zhang cannot stay in China to manage WildChina given her personal problems, She has three alternatives for WildChina. First, Zhang has to decide whether to continue operation of WildChina or liquidate it. If Zhang decides to liquidate WildChina, the workers will lose their job. WildChina’s clientele, networks, employees’ expertise and organizational infrastructure will be lost.

If Zhang decides to keep WildChina in business, she has two alternatives. One option for Zhang is to sell her company. If she does so, the workers will be able to keep their job, and WildChina would have an opportunity to prosper. However, Zhang will lose all interests in the company. She will hand over all the information and expertise, developed over the five years of operations, to the buyer.  

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